ADVERTISERS.
>> HE MIGHT BE TEXTING NOT OUT.
THANK YOU VERY MUCH.
THIS HEARING SHOULD RESUME
SHORTLY.
WHILE WE OWE IT TO YOU JUST TO
HEAR THIS, IT IS A BIG DEAL.
I WANT TO WEIGH THIS WITH MY
PANELISTS RIGHT NOW, THE FORMER
WELLS FARGO CEO.
THEY WERE SELLING NEW ACCOUNTS
THAT HE DIDN'T WANT.
THOSE PEOPLE WERE PAYING FOR
SOMETHING THEY DID NOT SCORE.
NO ONE LOST MONEY ON THIS DEAL
THAT LOST HER PRIVACY IN TERMS
OF THAT BEING TOLD TO A
POLITICAL ORGANIZATION.
WE ARE NOT GETTING INTO THE
WEEDS.
THAT IS THE LAST TIME A SINGLE
CEO WAS BROUGHT BEFORE A
IT DOES TELL YOU A LITTLE BIT
ABOUT THE APPETITE TO GO AFTER
SOMEONE ON THIS PRIVACY ISSUE.
WHERE THIS IS GOING BESIDES THAT
IS ANYONE'S GUESS.
I'VE GOT CHARLIE GASPARINO WITH
US.
AND CONNELL MCSHANE.
CHRISTINA, YOU HAVE BEEN HEARING
THIS AS WELL BACK AND FORTH.
WHERE DOES THIS ULTIMATELY GO
AND WHAT WILL BE THE TREATMENT
THAT FACEBOOK IS GOING TO GET
OUT OF CONGRESS THAT SEEMS LOW
TO GET TOO DEEP IN THIS.
AT LEAST LET IT BE KNOWN TO NOT
HAPPY.
>> THEY AREN'T HAPPY.
WE'VE BEEN WATCHING US GO BACK
AND FORTH.
A LOT OF THE DISCUSSION IS ABOUT
HOW MUCH DISK THEY SPOKE
SCRUTINIZE THEIR DATA.
PEOPLE LIKE TO COMPLAIN
YESTERDAY LAWMAKERS DIDN'T KNOW
ABOUT FACEBOOK.
THEY ARE STILL STUCK ON AOL.
WOULD ZUCKERBERG HAD DONE TODAY
IS MENTIONED SEVERAL TIMES, WE
DON'T SELL OUR DATA.
BUT I WOULD LIKE TO EXPLAIN
THEIR CAVEATS TO THAT.
THEY MONETIZE THE DATA.
THEY MAKE MONEY OFF OF THE DATA.
THEY PROFIT.
THEY DON'T SELL TO ADVERTISERS.
ADVERTISERS WANT PEOPLE TO PLAY
SPORTS, THEY PROVIDE THE DATA.
BUT THEY KEEP IT SO THEY CAN
CONTINUOUSLY USE IT AGAIN AND
AGAIN AND AGAIN.
THE THIRD-PARTY ACTS LIKE
CAMBRIDGE ANALYTICA WHERE WE
KNOW THE CEO HAS STEPPED DOWN.
THEY HAVE TAKEN THE DATA AND
SOLD IT OFF.
IT'S NOT JUST CAMBRIDGE
ANALYTICA.
OTHERS HAVE DONE THAT AS WELL.
THAT'S WHERE FACEBOOK HAS TO
COME IN NOW.
>> THEY VIOLATED THE TERMS OF
SERVICE.
>> BY CAMBRIDGE.
OF COURSE.
CHARLIE: FACEBOOK DOES NOT SELL
ANY OF ITS DATA.
THEY TELL AN ADVERTISER WE CAN
YOUR PRODUCT.
AND BY THE WAY, I GET A LOT OF
WEIGHT LIFTING AND SALSA
DANCING.
BY THE WAY, TWITTER DOES ALL
THIS STUFF.
HERE'S THE INTERESTING THING.
A COUPLE IN US YESTERDAY, 50% OF
THE PROBLEMS COME FROM THE
DIRECT SALE OF INFORMATION.
ABOUT A MONTH AGO WHEN THIS
FIRST BROKE HIM I SPOKE WITH A
BUNCH OF PEOPLE IN THE CAPITOL
HILL, GOP TYPES.
THIS IS YOUR TIME TO GET AT THE
LOUSY LIBERALS IN SILICON VALLEY
AND THEY WERE LIKE NOW,
REPUBLICANS.
WE ARE NOT GO IN THERE.
WE BELIEVE THIS IS PRIVATE
ENTERPRISE.
AS MUCH AS WE KNOW THEM
POLITICALLY, WE DON'T WANT TO
OPEN A PANDORA'S BOX.
IT'S NOT LIKE THE DEEP STATE OF
THE CIA.
I WILL TELL YOU THIS.
I THINK THERE WILL I THINK
THERE'LL BE SOME ROLLS AND STUFF
WITH REPUBLICANS IN CONGRESS.
THEY WILL NOT BE REAL HARSH
REGULATIONS.
CONNELL: AND IF THERE WAS, WHAT
WOULD IT BE?
HOW WOULD THEY DO IT?
I'M TRYING TO FOLLOW ALONG WHAT
THEIR GOAL IS.
CHARLIE: IF IT'S ON YOUR TWITTER
SCREEN THAT NOTHING WILL BE
SHARED OUT OF YOUR ACCOUNT AND
YOU PUSH THE BUTTON, A LOT OF
PEOPLE WOULD DO THAT AND TWITTER
STOPS ITS ABILITY TO MONETIZE.
I'M NOT SAYING THEY SELL IT.
THEY MONETIZE IT HAS A BETTER
WORD.
>> YOU JUST SAID THEY ARE GOING
TO CHANGE THEIR BUSINESS MODEL.
HE JUST DIDN'T ANSWER THAT
QUESTION.
SHE ASKED WHAT YOU CHANGE YOUR
BUSINESS MODEL IN ORDER TO
PROTECT CUSTOMERS AND HE SAID I
DON'T KNOW WHAT YOU MEAN.
TRANSFER MY POINT IS THAT
DEMOCRATS GET CONGRESS,
REGULATION WILL FORCE THEM TO
CHANGE THE BUSINESS.
NEIL: WILL THEY BE COUCH IN ONE
OF THEIR BIGGEST OUTLAYS UP
UNTIL NOW.
HE WILL UPDATE FACEBOOK AND
ZUCKERBERG AND HIS PRACTICES.
HE HAS BEEN A VERY GOOD FRIEND
TO THOSE DEMOCRATS.
>> CORPORATIST DEMOCRATS.
NEIL: I DON'T CARE.
I POINTED SAYING THIS IF I
DEFENDED PEOPLE NOW OUT TO
REGULATE THE OUT OF ME AND I
DON'T THINK IT'S GOING TO GO
ANYWHERE.
I THINK IT'S AN INTERESTING
JUXTAPOSITION FOR HIM TO BE AND
WHERE HE'S PROBABLY SCRATCHING
HIS CHIN AND SAY YOU KNOW WHAT,
THIS IS WEIRD.
I PUT A LOT ON THE LINE FOR
THESE PEOPLE IN THIS POLITICAL
ORGANIZATION GAINS THE BENEFIT,
HE HAS A LONG AND PRETTY
CONSISTENT RECORD OF BEING LEFT.
TRANSFER YOU HAVE TO LOOK AT --
NEIL: I WANT TO GET YOUR
THOUGHTS ON THIS.
DO YOU THINK THE DEMOCRATS TAKE
OVER, THAT THEY WOULD REALLY
RISK, YOU KNOW, ALIENATING A GUY
AND A COMPANY, THAT HAS BEEN
VERY FRIENDLY.
CHARLIE: VERY FRIENDLY.
THE MEDIA FOCUSES SO MUCH ON THE
REPUBLICAN PARTY FROM THE
POPULIST RIGHT-WING BREITBART
TYPES, MAINSTREAM REPUBLICANS.
HERE'S THE BATTLE GOING ON IN
THE DEMOCRATIC PARTY.
THE ELIZABETH WARREN TYPES, THE
LEFTIES COME AND THEY DON'T LIKE
THIS GUY.
NEIL: THAT'S A GOOD POINT.
THEY DON'T DIFFERENTIATE.
>> USING THE CAMPAIGN
CONTRIBUTIONS MIGHT DECREASE
BECAUSE NOW AT THE COMMERCE
COMMITTEE AND ENERGY COMMITTEE
WITH MASSIVE CONTRIBUTIONS.
>> MOST OF SILICON VALLEY'S
ASSOCIATION OF THE DEMOCRATIC
ARTY IS BASED ON SOCIAL ISSUES
RATHER THAN BUSINESS ISSUES.
A LOT OF SOCIAL LIBERALS IN THAT
PART OF THE WORLD OUR WORK IN
THAT INDUSTRY.
NEIL: HE ACKNOWLEDGED THAT IN
TESTIMONY YESTERDAY.
I AM WELL AWARE OF THE
PERCEPTION.
I'M JUST WONDERING.
THIS IS JUST ME MAKING THIS.
A COUPLE OF TIMES HE WAS
SURPRISED BY THE NASTINESS.
>> THERE WAS A LITTLE BIT OF
HOSTILITY, BUT IT WAS A
COLLABORATIVE ENVIRONMENT TODAY.
NEIL: THERE WAS MUCH MORE THAT I
SAW EXCITING BY BREAKING IT
DOWN.
IT WAS OVERWHELMINGLY,
DISPROPORTIONATELY DEMOCRAT
FAVORING SWEEPING REGULATION.
>> YOU A PRECEDENT FOR SAYING
THAT.
THE SECOND BIGGEST CONTRIBUTOR
TO BARACK OBAMA IN 2000 IT WAS
GOLDMAN SACHS.
JERRY COHEN WAS RAISING MONEY ON
WALL STREET TO BASICALLY MAKE
IRAQ OBAMA PRESIDENT.
HE TURNED AROUND AND WENT
BALLISTIC ON WALL STREET, PUSH
DODD-FRANK ON A SQUEEZE GOLDMAN
SACHS BUSINESS MODEL AND GUESS
WHAT HAPPENED WITH COHEN AND
WENT BLANK FINE.
THEY STARTED RAISING MONEY FOR
REPUBLICANS AND GUESS WHERE THEY
ENDED UP ULTIMATELY?
WORKING FOR DONALD TRUMP.
THERE IS PRECEDENT FOR THAT.
THE MAINSTREAM MEDIA -- I HATE
THAT WORD BECAUSE I DON'T THINK
I MAINSTREAM.
NEIL: NOT EVEN ON THIS PLANET.
AT LEAST I KNOW THAT THERE ARE